If you are selling your home in todays market, like many others in Canyon County and the surrounding area , you may have been asked to consider a contingent contractthe question is, should you?
If you are selling your home in todays market, like many others in Canyon County and the surrounding area
, you may have been asked to consider a contingent contractthe question is, should you?
What is a contingent offer? Its m
eaning is that the buyer's home must sell before the buyer is obligated to complete the purchase transaction.
From personal experience, I know it can leave Sellers feeling deflated to finally receive an offer after months and months of waiting only to find the dreaded contingency. What do you do?
Without knowing anything about the buyer, or their situation, it's almost impossible to make an informed decision on whether or not to accept the buyer's contingent offer. Even if you like their offering price and the rest of the offer, you can't control what asking price they will place on their own property, thus affecting its potential for a quick sale. However, you can do some research to help you make an informed decision.
Here are few good ideas for contingencies!
If possible, drive by the house, if local, and assess for yourself how marketable the property is. Is it in a healthy community? Does the home appear to be well maintained? Does the house have curb appeal? How many "for sale" signs are in the neighborhood or does the neighborhood appear stable? Will the house appeal to today's average buyer in your area?
Have your agent do some research on the local market where your buyer's home is located. Your agent should insist in your purchase and sale agreement that the buyers list their home on the Multiple Listing Service with an agent, and give an expiration date for when the contingency is to be removed.
Have your agent include in your counteroffer the right to approve the list price. That way if they list for a price that seems unreasonable - which they probably won't since they want to buy your house after all - you'll be able to get out of the contract.
Have your agent continue to offer your home for sale under a "Continue the Right to Market clause. Once you receive a second offer, your first buyer has set amount of time to remove their contingency. If they are unable or unwilling to do so, you are able to move forward with the new buyer.
Many Realtors might discourage homeowners from accepting contingent offers because showing agents may no longer show your home to their buyers, however, I feel that many buyers like to see homes that show contingent in
MLS
because, we always want what we cant have, right?
Maybe, just maybe this information will assist you in setting yourself apart from the masses and one step closer to a successful sale!
I would love to here from you! Please let me know if there is anything you would like me to write about or share with you or please feel free to comment on what I have written! I have over 14 years of real estate experience and would love to share with you!